Spike in demand

“The consumption pattern is always on the higher side as it is the catalyst for all major purchases, similar to Christmas in the west,” he said.

“The retailers have done well to accommodate the spike in demand or even accelerate demand with some amazing offers on cars, groceries, travel and restaurants with all the Iftar offers. They capitalise well during these months.”

“This year, sales may be higher as Ramadan is at the same time when people leave for a vacation, a period when consumers spend more as they travel. Also, first quarter results posted by companies have been very inspiring and I see more sales during this Ramadan as the economy seems to be improving,” Alkesh Joshi, director of Tax at EY said.

The encouraging buying trend in the retail sector during the month is expected to cascade through to different industries as consumer appetite for spending is fed by financial institutions, boosting the economy on all fronts.

“Banks and financing companies are always looking forward to Ramadan. This is a very important month of business for us and many others. A significant number of high cost transactions are made during Ramadan, from cars to houses. Most people are looking at this time either for spiritual or economic reasons,” a senior banker at a leading bank in Oman said.

According to automotive dealerships in the country, the sector witnessed a big drop in sales in recent years, especially 2017, but Ramadan is a cheerful time for car dealers as sales increase independent of economic conditions.